Monday, February 25, 2013

Raffles Medical Group

Raffles Medical Group: Good set of results which was in-line, abelt at the higher end of estimates. 4Q12 net profit at $20.2m, +22.7% yoy and +61% qoq. Result brings FY12 rev at $311.6m, +14.2% yoy and net profit at $66.6m, +12% yoy. Results was mainly boosted by organic growth and expansion of medical centres. RafflesHealthScreeners and the RafflesExecutive Medical Centre relocated to larger and dedicated premises, while the new HealthCheck centre was relocated at level 1 to caterexclusively for statutory and employment related medical checks, freeing up space for the expansion of the General Practice and Emergency centres. The clinics at Raffles Place, Tampines One and Causeway Point centres saw increased capacity to serve patients better. RafflesMedical continued to increase its corporate clientele portfolio in the hoteling, food & beverage, fashion as well as financial & governmental sectors and continued to benefit from the government initiated Going forward, grp note that the more measured pace in China’s economic growth may have a dampening effect on healthcare demand from the region. Coupled with additional beds of new public and private hospitals coming onstream in SG and the region, the healthcare landscape will remain competitive. Barring unforeseen circumstances, grp optimistic that it will continue growing in 2013. Separately, the grp announced that it has signed a non-binding LOI with China Merchants Shekou Industrial to develop to an integrated ihospital in Shenzhen, China. The hospital, will have more than 200 beds and is expected to provide high-end medical services in the Pearl River Delta region to foreigners and local residents. The proposed hospital development is subject to finalisation of terms and relevant regulatory.

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